The fund will invest primarily in below-investment-grade corporate bonds with an objective of achieving high current income with the opportunity for capital appreciation.
The fund’s goals are to generate returns of 4% plus inflation over rolling five-year periods while outperforming its peers.
The strategy is currently available through Pershing, Schwab and NFS platforms.
The firm also announced that the Diamond Hill Strategic Income Fund will be renamed the Diamond Hill Corporate Credit Fund to “better reflect its investment strategy and objectives.”
Vanguard Offers Core Bond Fund
Valley Forge, Pa.-based Vanguard has introduced the Vanguard Core Bond Fund, an actively managed fixed income offering.
The fund will invest in high-quality bonds across the investment-grade market, limiting its exposure to non-investment-grade bonds to 5% and aim for a portfolio with an intermediate-term average maturity.
Using a risk-controlled approach, the fund will seek to outperform the broad U.S. fixed-income market through disciplined security selection, sector allocation and duration decisions.
The fund is available in an investor share class with a minimum investment of $3,000 at a cost of 25 basis points, and in an Admiral share class with a minimum investment of $50,000 at a cost of 15 basis points.